Tata Motors Q1 FY26 Results: PV Division, JLR Face Headwinds

Tata Motors Limited announced its financial results for the first quarter of fiscal year 2026 (Q1 FY26), ending 30 June 2025, revealing a challenging period for its key segments, Tata Passenger Vehicles (Tata PV) and Jaguar Land Rover (JLR). 

Despite headwinds, the company showcased resilience with strategic corporate actions and a focus on future growth, as outlined in its board meeting held today.

Tata Passenger Vehicles: Subdued Demand

Tata PV reported a revenue of ₹10,877 crore, down 8.2 per cent year-on-year (YoY), driven by a 10.1 per cent drop in wholesale volumes to 124,800 units. The segment faced weaker industry demand and transitions to new models like the Altroz facelift and Harrier.ev. 

The earnings before interest, tax, and amortization (EBITDA) margins fell to 4.0 per cent (down 180 basis points), with EBIT margins at -2.8 per cent (down 310 basis points), resulting in a profit before tax (PBT) loss of ₹129 crore. 

However, the electric vehicle (EV) segment remained a highlight, with EV wholesales at 16,200 units (down 2.1 per cent) and a market share of 36.7 per cent. 

CNG penetration stood at 27 per cent, and EV penetration was steady at 13 per cent. New launches, including the Harrier.ev and Altroz facelift, are claimed to have received strong market response. Also, the Tata Punch became India’s fastest SUV to cross 6 lakh units in under four years. 

Jaguar Land Rover: Tariff Impact, Sustained Profitability

JLR recorded revenues of ₹6,604 crore, down 9.2 per cent YoY, impacted by a 27.5 per cent US trade tariff and the planned wind-down of legacy Jaguar models. EBITDA margins dropped to 9.3 per cent (down 650 basis points), and EBIT margins fell to 4.0 per cent (down 490 basis points). 

The profit before tax (PBT) stood at ₹3,861 crore, down 49.4 per cent YoY. Despite these challenges, JLR achieved its 11th consecutive profitable quarter. 

The US-UK trade deal (effective 30 June 2025) will reduce tariffs to 10 per cent for 100,000 UK-manufactured vehicles, and a US-EU deal (announced 27 July 2025) will lower tariffs to 15 per cent. 

Tata Commercial Vehicles and Others

Tata Commercial Vehicles (CV) saw revenues of ₹17,009 crore, down 4.7 per cent YoY, but improved EBITDA margins to 12.2 per cent (up 60 basis points) and EBIT margins to 9.7 per cent (up 80 basis points). 

PBT rose to ₹1,657 crore, supported by cost savings and a 68 per cent export growth. The segment launched the Ace Pro mini-truck and strengthened its presence in Qatar. 

Others, including IT and insurance broking, reported ₹1,436 crore in revenue. Consolidated revenues for the company stood at ₹104,407 crore (down 2.5 per cent), with EBITDA at ₹9,700 crore (down 35.8 per cent) and PBT at ₹5,617 crore. 

Also read: Made-in-India Suzuki e Vitara To Be Tested By Euro NCAP Soon